Debra can make either 12 cakes or 16 cookies in 4 hours. Sam can make either 6 cakes or 12 cookies in 4 hours. If both Debra and Sam concentrate on producing only the product in which they haven a comparative advantage, how many cakes and how many cookies will they produce?
Q: In a day, Julia can produce 12 bushels of wheat or 4 pounds of meat while Carlos can produce 10…
A: Opportunity cost in general terms can be understood as the benefits of a good or commodity lost due…
Q: Suppose that the United States and Canada both produce only two products: televisions and food.…
A: The value of alternative opportunities foregone and sacrificed to acquire one unit of a commodity is…
Q: The following graph shows the same PPF for Yosemite as before, as well as its initial consumption at…
A: Production possibility frontier shows different combination of two good or services that can be…
Q: Suppose that in the country of England, two goods can be produced on available agricultural land:…
A: Opportunity cost is the worth of the following best other option or choice. This worth could…
Q: Suppose there exist two imaginary countries, Denali and Congaree. Their labor forces are each…
A: Opportunity Cost refers to the value of a consumer's foregone activity such as the consumption of a…
Q: Maldonia has a comparative advantage in the production of while Sylvania has a comparative advantage…
A: The curve that depicts various quantities of goods and services that could be produced with the…
Q: 1.) both have ten hours of time available. The can use their time to do one of two things: make…
A: * Solution :- (1) From the given information the answer is provided as below as
Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…
A: A country should specialise in a particular good in which it has a competitive advantage.
Q: Paul's PPF Sue's PPF Cheese Cheese 100 60 40 30 20 80 Ham 36 90 Ham The graph above shows that Paul…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Suppose that Maldonia and Desonia agree to trade. Each country focuses its resources on producing…
A: Production possibility frontier shows different combination of two good or services that can be…
Q: loe Cream the amounts of ice cream and pies that Tim and Dave can make in a given weekend. Use this…
A: Given information: *Dave produce 3 pies and 2 ice cream. *Tim produce 5 pies and 3 ice cream.
Q: Specialization and trade When a country has a comparative advantage in the production of a good, it…
A: Production possibility curve is a graphical representation that shows various combinations of two…
Q: Who has the absolute advantage in making pizzas and who has the absolute advantage in making…
A: A country has an absolute advantage in production a good when he can producer that good more…
Q: Tina can allocate her 8-hour day between baking and cooking. Each hour devoted to baking yields 2…
A: First, we determine the output table which shows the maximum amount of cake and plates of food can…
Q: Country A can produce one Outfit in 6 hours and one unit of Corn in 2 hour. Country B can produce…
A: The ability of an economy to produce a specific good or service at a lower opportunity cost than its…
Q: Mary can wax 6 cars per day or wash 4 cars per day and John can wax 3 cars per day or wash 3 cars…
A: The trade becomes beneficial when the individuals or nations specialize in producing goods in which…
Q: Isabella and Antonio are auto mechanics. Isabella takes 4 hours to replace a clutch and 2 hours to…
A: Opportunity cost is the decrease in production of one good needed to produce more units of the other…
Q: 2. Comparative and absolute advantage Shen and Valerie are farmers. Each one owns an 18-acre plot of…
A: Opportunity cost is the worth of the following best elective when a choice is made An individual…
Q: What is Comparative Advantage and how is it determined? Explain this concept in words.
A: Theory of comparative advantage in international trade helps trading countries in specialization and…
Q: Amy and Bill are fixing up their house by painting walls and installing electrical outlets. In one…
A: A country is said to have an absolute advantage in the production of a good when it can produce a…
Q: When a country has a comparative advantage in the production of a good, it means that it can produce…
A: To solve this problem, we need to analyze the given production possibilities frontiers (PPFs) for…
Q: Suppose the market shown in the graph below is initially in equilibrium with price at P1. Then, the…
A: Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…
Q: Suppose that Patrick Mahomes can pass for 28 touchdowns per season or run for 14 touchdowns per…
A: Opportunity cost = What is sacrificed / What is gained.
Q: Isabella and Antonio are auto mechanics. Isabella takes 4 hours to replace a clutch and 2 hours to…
A: Absolute advantage occurs when a country can produce more of a good with the given resources. A…
Q: Freedonia Lamponia 16 16 14 14 12 12 PPF 10 10 8 8 PPF 4 2 2 + 4 8 10 12 14 16 2 4 8 10 12 14 16…
A: Comparative Advantage of a nation in producing certain goods is said to be the relative ability of…
Q: Suppose that Freedonia and Desonia agree to trade. Each country focuses its resources on producing…
A: Freedonia and Desonia agreed to free trade in tea and grain. Each country specializes its resources…
Q: Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two…
A: The term O.C. describes the value of the next best alternative forgone when a decision is made. It…
Q: Consider the combined production possibility frontier for a two good (fish and apples), two-person…
A: A "production possibility frontier" (PPF) is a graphical representation of the various combinations…
Q: The United States and Canada have the production possibilities curves shown above. It is determined…
A: The formula is:The opportunity cost of production of a good = maximum production of other good /…
Q: Jason and Holly produce lollipops and chocolates. Their production possibilities are given by the…
A: The theory of comparative advantage suggests that countries should specialize in the production of…
Q: Isabella and Antonio are auto mechanics. Isabella takes 8 hours to replace a clutch and 6 hours to…
A: The term O.C. describes the value of the next best alternative forgone when a decision is made. It…
Q: When a country has a comparative advantage in the production of a good, it means that it can produce…
A: Comparative advantage is the nation's specialization of goods in the international market. The…
Q: John and Jack run a car washing business. In one week John can wash 36 cars or he can wax 20 cars.…
A: Wash Wax John 36 20 Jack 24 12 In a week , John can wash and wax more number of cars as…
Q: Amanda can allocate her 8-hour day between baking and cooking. Each hour devoted to baking yields 2…
A: An economic entity or nation is said to have an absolute advantage in the production of a good or…
Q: Because of this comparative advantage, both countries benefit when they speciallze and trade with…
A: If we tabulate the given graph then we get Lemons (millions of pounds) Coffee (millions of…
Q: Isabella and Antonio are auto mechanics. Isabella takes 4 hours to replace a clutch and 2 hours to…
A: Opportunity cost is the cost of producing 1 good in terms of other. A country has Comparative…
Q: Suppose that France and Germany both produce wine and cheese. The table below shows combinations of…
A: As per given information, Production level Wine Cheese Germany 5 25 France 4 16…
Q: Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have 10 hours of…
A: Absolute advantage refers to ability of an individual or country to produce more of the good than…
Q: The following graph shows the same PPF for Denali as before, as well as its initial consumption at…
A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…
Q: Amy and Bill are fixing up their house by painting walls and installing electrical outlets. In one…
A: Absolute cost advantage- This theory is given by Adam Smith. Absolute advantage takes place when…
Q: Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two…
A: The country which produces more Taco has absolute advantage in Taco. So, United States has absolute…
Q: After specialization, suppose the two agree on a price of 7 units of good X for each unit of good Y.…
A: given that, After specilaziation, price: 7 units of good X for each unit of good Y exchange: 140…
Debra can make either 12 cakes or 16 cookies in 4 hours. Sam can make either 6 cakes or 12 cookies in 4 hours.
If both Debra and Sam concentrate on producing only the product in which they haven a
Step by step
Solved in 2 steps
- why is it not realistic for a PPF curve to be straight?Randy and Frank are both landscapers. Randy can mow 12 lawns per day or prune 15 trees. Frank can mow 16 lawns per day or prune 24 trees. Randy and Frank each work 240 days per year. a. Determine who has the absolute advantage at each task, what their respective opportunity costs are for mowing a lawn, and who has comparative advantage in each task. (Click to select) (Click to select) The opportunity cost of mowing a lawn for Randy is The opportunity cost of mowing a lawn for Frank is (Click to select) ✓has a comparative advantage in mowing lawns. (Click to select) has a comparative advantage in pruning trees. b. Assuming that only one of the tasks is performed, then together Randy and Frank can service a maximum of lawns or trees each year. ✓has an absolute advantage in mowing lawns. ✓has an absolute advantage in pruning trees. trees. trees. c. If each landscaper fully specializes according to his comparative advantage, then the maximum number of lawns that can be mowed annually is…In Italian restaurant, Jack needs 1 hour and a half to prepare pizza and 1 hour to make lasagna. Pascal needs 2 hours to make a pizza and 1 hour and a half to make a lasagna. Which one has the comparative advantage in preparing pizza, in preparing lasagna. Explain your answer. Which one has the absolute advantage in preparing lasagna, in preparing Pizza. Explain your answer.
- I don't understand the second part of this homework. If Frankie and Johnny completely specialize according to comparative advantage, what will happen to the amount of eggs and milk? I have the opportunity cost calculated to understand who should do what in this case. But what will I do to that number?Suppose that there are two countries, the North and the South. Given the North's resources, it can produce 4 Cars in an hour or 1 unit of wheat in an hour. Given the South's resources, it can produce 1 car per hour or 4 units of wheat in an hour. Both countries have forty hours in total to produce wheat and cars. Finally, the goal of each country is to have the most possible cars and wheat, but also to always have an equal amount of each. In other words, 10 cars and 10 wheat is just as valuable as 11 cars and 10 units of wheat, or 10 cars and 11 units of wheat, but 11 cars and 11 wheat would make the country even better off. The question below relates to the PPF for the North and the South. While you do not need to turn in a graph of the PPF, they may be helpful to answer these questions. Finally, the first set of questions refers to a world where the North and South cannot trade, while the second set of questions refers to a world where they can trade. In the latter set of…Currently Bob is producing 8 apples and 9 peppers, while John is producing 3 apples and 3 peppers. If they instead specialized based on comparative advantage, the total number of peppers and apples would change by how much?
- READ THOROUGHLY! Molly is Person A; John is person B 2 people from the same house do two things: they give rides and deliver meals Molly can provide 4 taxi rides or 2 meal deliveries in an hour. John can provide 5 taxi rides or 4 meal deliveries in an hour. Who has the absolute advantage in the provision of taxi rides? Who has the comparative advantage in the provision of taxi rides? Absolute advantage: Person A Comparative advantage: Person A Absolute advantage: Person B Comparative advantage: Person A Absolute advantage: Person A Comparative advantage: Person B Absolute advantage: Person B Comparative advantage: Person B What is a price of taxi rides (in terms of meal deliveries) at which BOTH Molly and John will be better o" by specialization and trade?Martha and Dave like to make identical tacos and cakes. The time it takes Martha and Dave to make tacos and cakes is given in the table below. Martha Dave Time to make a taco 10 minutes 15 minutes Time to make a cake 20 minutes 30 minutes Which person has an absolute advantage in the production of tacos, and which person has an absolute advantage in the production of cakes? Group of answer choices Martha has an absolute advantage in producing both goods. Dave has an absolute advantage in producing both goods. Neither Dave nor Martha has an absolute advantage at producing either good. Both Martha and Dave have an absolute advantage in producing both goods. Martha has an absolute advantage in tacos; Dave has an absolute advantage in cakes.The production possibilities frontiers in the figure to the right show how many bananas and coconuts you (Y) and your neighbor (N) can consume without trade Suppose you are initially consuming 14 bananas and 3 coconuts and your neighbor is initially consuming 3 bananas and 9 coconuts. Now, suppose you and your neighbor specialize by each only producing the good for which you have a comparative advantage You give your neighbor half of your production for half of what he produces. (Enter all responses as integers) If you trade with your neighbor, then you will have additional coconut(s) after the trade and additional banana(s) At the same time, your neighbor will be able to consume additional banana(s) and will be as a result of trade. Quantity of coconuts 26- 2.*.*.*.*. Your PPF 12- 10- Neighbor's PPF 6 8 10 12 14 16 18 20 22 24 26 28 30 32 Quantity of bananas GOO
- Two planets, Endor and Kamino, both produce two goods, blasters and radio devices. The below graphs show the PPF curves of each planet before specialization. Initially, each planet produces 50,000 radio devices and 5,000 blasters. In total, 100,000 radios and 10,000 blasters are produced. Which planet has a comparative advantage in producing radios and which planet has a comparative advantage in producing blasters? If each planet was to fully specialize in producing one good, how many radios in total would be produced and how many blasters in total would be produced? Suppose that the two planets trade 5,000 blasters for 90,000 radios. Graph and label the new points on each planet’s PPF using the graphs above. What is the outcome of specialization and trade for each planet?When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Glacier and Rainier. Both countries produce corn and basil, each initially (i.e., before specialization and trade) producing 18 million pounds of corn and 9 million pounds of basil, as indicated by the grey stars marked with the letter A. BASIL (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF 6 Glacier A 12 18 24 30 36 CORN (Millions of pounds) 42 48 ? BASIL (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF I + 6 Rainier 12 18 24 30 36 CORN (Millions of pounds) I 42 48 (?) Glacier has a comparative advantage in the production of while Rainier has a comparative advantage in the production of Suppose that Glacier and Rainier specialize in the production…Both Bob and Laura can work 6 hours per day in either market work for a wage or in home production. In particular, they can work at home to make meals or work in the labor market to purchase ingredients for those meals. Their production possibilities per hour are in the table below. Imagine Laura and Bob get married to enjoy the economic gains from specialization and division of labor in marriage, and the person who has the comparative advantage in cooking meals specializes in cooking meals while the person with the comparative advantage in labor market works specializes in labor market work. If they still need to each eat 3 meals per day (for a total of 6 meals), what are Bob and Laura's joint gains from marriage in terms of purchased ingredients? Bob Laura Numeric Response Meals per hour $ of Ingredients per hour 1 1 20 15
